Trump is threatening to put a tariff on every Chinese good

President Donald Trump upended almost three decades of presidential precedent by commenting on the Federal Reserve's interest rate policy on Thursday, but at least one economist thinks the president's remarks could come back to bite him.

U.S. President Donald Trump said on Friday he is willing to hit all Chinese goods imported to the United States with tariffs if necessary.

For the second day in a row, President Trump on Friday ripped the Federal Reserve for hiking interest rates - continuing an aggressive assault on the central bank, which is normally off limits from presidential attacks.

China's central bank rate is now 4.35 per cent and the country hasn't cut its benchmark rate since 2015.

U.S. automakers, dealers and suppliers remained united in opposition to the president's tariffs for fear it would drive prices up. "The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals".

"We are being taken advantage of, and I don't like it", Trump said. On Thursday, Trump said he is "not thrilled" about Fed interest rate hikes.

The White House in June already threatened to extend punishing United States duties progressively to up to $450 billion in Chinese imports.

"The dollar is an important issue today especially because we have been on a rise for quite a long time", said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Trump also said Fed Chairman Jerome Powell, whom he nominated, is "a very good man".

Even though he's frustrated, Trump said he's "letting them do what they feel is best".

In the CNBC interview, Trump also said he was "not happy" the Fed planned to continue raising benchmark lending rates.

President Trump departs after speaking at a "Pledge to America's Workers" event in the East Room of the White House on Thursday.

Fed Chair Jerome Powell (who was appointed by Trump) stressed to Marketplace in his first broadcast interview that the Fed is politically independent.

Trump said he was concerned that the "Chinese currency was dropping like a rock" and the strong USA dollar "puts us at a disadvantage". Trump told CNBC he's anxious the Fed's policies will cancel out his efforts to boost the economy.

"I've been surprised that up until now, markets seem overly sanguine about the risks" of a trade war between the world's two biggest economies, said David Dollar, senior fellow at the Brookings Institution's China studies center and a former official at the World Bank and U.S. Treasury Department.

The president is limited in how much direct pressure he can put on the Fed chief. "So somebody would say, 'Oh, maybe you shouldn't say that as president". That episode ultimately triggered runaway inflation that took a decade to tame and required raising the Fed's policy rate above 15 per cent - more than eight times the rate's current average. But he also told CNBC during the campaign that he is a "low interest-rate-person". "I really like President Xi (Jinping) a lot". The president has already imposed tariffs on $34 billion in Chinese goods, and Beijing has retaliated with tariffs on an equal amount of American exports.

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